Uni­tyPoint Health re­ports op­er­at­ing mar­gin surged in 2013

Modern Healthcare - - REGIONAL NEWS - —Beth Kutscher

Uni­tyPoint Health, a 12-hospi­tal sys­tem based in West Des Moines, Iowa, re­ported an in­crease in op­er­at­ing sur­plus in 2013, in part at­trib­ut­able to higher re­im­burse­ment from Med­i­caid and its value-based con­tracts.

The not-for-profit group saw a 34.5% year-over-year in­crease in op­er­at­ing sur­plus dur­ing fis­cal 2013, which ended Dec. 31. It re­ported $82.6 mil­lion in op­er­at­ing in­come on $2.8 bil­lion in rev­enue, com­pared with $61.4 mil­lion on $2.7 bil­lion in rev­enue dur­ing fis­cal 2012.

Pa­tient ser­vice rev­enue from Med­i­caid re­im­burse­ment was nearly 16% higher in 2013 than it was the prior year. The sys­tem pointed to a 2011 pol­icy change in Iowa that levied an an­nual tax as­sess­ment on cer­tain hos­pi­tals to fund Med­i­caid and ob­tain federal match­ing dol­lars. How­ever, a por­tion of those funds were re­turned to hos­pi­tals in the form of higher Med­i­caid re­im­burse­ment that is now closer to the cost of pro­vid­ing care.

A sim­i­lar pol­icy ex­ists in Illi­nois, where Uni­tyPoint has two hos­pi­tals. Med­i­caid re­im­burse­ment from Illi­nois nearly dou­bled year over year.

Uni­tyPoint also re­ported that it rec­og­nized $7.8 mil­lion in rev­enue from value-based con­tracts, a sig­nif­i­cant in­crease from only $2.3 mil­lion in 2012. Its value-based con­tracts in­clude its Trin­ity Pioneer ACO, which be­gan op­er­at­ing Jan. 1, 2012; a commercial ac­count­able care or­ga­ni­za­tion in part­ner­ship with Well­mark Blue Cross and Blue Shield, which was formed April 1, 2012; and a Medi­care shared-sav­ings ACO, which was ac­cepted into the pro­gram July 1, 2012.

Iowa Methodist Med­i­cal Cen­ter in Des Moines is the flag­ship of Uni­tyPoint Health. The

health sys­tem re­ported strong op­er­at­ing gains for 2013.

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